As long as the plan is nondiscriminatory, any life insurance provided employees as a fringe benefit is tax-exempt.

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Quizplus · Accepted Answer

While life insurance provided to employees as a fringe benefit can be tax-exempt, it is only tax-exempt up to $50,000 of coverage per employee under the IRS guidelines. Coverage amounts above $50,000 are subject to inclusion in the employee's gross income for tax purposes, to calculate the cost of coverage that is taxable.

As Long as the Plan Is Nondiscriminatory, Any Life Insurance